Since Halo Top entered the market, the better-for-you ice cream category has become increasingly competitive. Unilever was so taken aback by Halo Top’s success that it reformulated two of its classic brands—Ben & Jerry’s and Breyers. However, that wasn’t sufficient. The launch of Culture Republick represents their latest effort to catch up to the top-selling pint of ice cream in the United States.
When Halo Top debuted, it addressed consumer demand for “free-from” treats by offering a tasty, healthier ice cream with transparent ingredients. Consequently, the company sold over 17 million pints in 2016, marking a staggering 2,500% increase in sales within a year. This rapid growth has negatively impacted competitors, including Unilever. By fall 2017, Unilever experienced a 6.7% decline in net sales in its Refreshment segment and lost 1.5 share points to Halo Top, according to Food Business News.
Although Unilever quickly reformulated some of its popular ice cream brands, Culture Republick is a direct response to the surging demand for better-for-you ice cream. The brand aims to align with current consumer trends by offering healthier benefits while also supporting local arts with every purchase. This strategy taps into the growing consumer preference for companies that act as responsible corporate citizens. Nevertheless, the market is already saturated with competition, prompting Unilever to focus on what Culture Republick offers, particularly its inclusion of probiotics.
As interest in gut health rises, manufacturers are infusing probiotics into a wide array of products, from beer and candy to traditional sources like yogurt. BCC Research predicts that the probiotics market will expand from $32 billion in 2014 to $50 billion globally by 2020. Millennials, in particular, are driving this growth, which could benefit Culture Republick. Similar to how Halo Top catered to a specific niche, Unilever’s value-added strategy is likely to attract customers to at least sample Culture Republick. Retaining these customers will require an effective mix of pricing, clean ingredients, flavors, and taste.
Culture Republick also holds certain advantages over Halo Top. According to a Mintel ice cream study, around 11% of Americans actively avoid “healthy” frozen treats because they believe these products are “meant to be treats.” Meanwhile, Mintel research indicates that the ice cream and frozen dairy dessert market grew by 7% between 2014 and 2016, suggesting that when Americans crave indulgence, they prefer authentic options. Culture Republick appears to fulfill this desire while also incorporating probiotics and offering 300 mg of elemental calcium citrate, appealing to health-conscious consumers.
As part of Unilever, the brand benefits from a vast distribution network and robust marketing resources. While Halo Top demonstrated the power of social media for explosive growth, a reputable parent company can provide additional support. Nonetheless, Culture Republick must quickly generate excitement and loyalty if it hopes to challenge the expanding Halo Top empire.